iHeartMedia, Inc. (OTCBB: IHRT) today issued the following response to
an event of default allegation made by a small number of the company’s
lenders:
The strong performance of our operating business provides us with the
flexibility to manage our capital structure in a prudent manner. In full
compliance with our debt covenants, we continue to evaluate
opportunities to strengthen our balance sheet.
We believe our recent contribution of Clear Channel Outdoor Holdings,
Inc. stock to our subsidiary Broader Media, LLC constituted a permitted
investment under, and fully complied with, our financing agreements. We
strongly believe the notices of default issued by the lender group based
on the contribution are invalid.
Prior to receiving the notices, we filed a lawsuit in the State District
Court in Bexar County, Texas to reaffirm our position that the
contribution was permitted. We intend to take any other actions
necessary to protect iHeartMedia and remain willing to engage in
constructive discussions with any of our various groups of lenders to
position iHeartMedia for long-term growth.
About iHeartMedia, Inc./iHeartCommunications, Inc.
iHeartMedia, Inc. (OTCBB: IHRT), the parent company of
iHeartCommunications, Inc., is one of the leading global media and
entertainment companies. The company specializes in radio, digital,
outdoor, mobile, social, live events, on-demand entertainment and
information services for local communities, and uses its unparalleled
national reach to target both nationally and locally on behalf of its
advertising partners. The company is dedicated to using the latest
technology solutions to transform the company’s products and services
for the benefit of its consumers, communities, partners and advertisers,
and its outdoor business reaches over 35 countries across five
continents, connecting people to brands using innovative new technology.
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